Kalyani Cast Tech IPO: Apply

November 8, 2023 admin 1 Reply Post Comment

Kalyani Cast Tech IPO Guidance

What is the business of Kalyani Cast Tech?

Kalyani Cast Tech started with the business of casting for which it had commissioned a casting unit at Rewari in Haryana. The company has a class A foundry and manufactures products such as MG Coupler Components, CI Brake Blocks, Adapter for WDG4 Loco, Bearing housing for electrical loco, Corner casting for Containers motor hub traction motors etc. It caters to a diverse client base such as Indian railways, companies engaged in Mining Industry, Cement Industry, chemicals and fertilizer and power plants. The company while catering to railways saw an opportunity in the year 2018 and started an addition line of business of manufacturing Containers. These containers were used by the railway transporters to transport goods via rail network in India.

The Company is led by Mr. Naresh Kumar, Promoter and Managing Director of the Company. He is an IIT, Madras passed out engineer. He has worked in Indian Railways at lower and middle level of management.

What is the Size of the IPO? 1804000 Sh./Rs.25.08 Cr
Shares offered to HNIs: Rs. 3.78 Cr
Shares offered to RIIs: Rs. 8.78
Applications required for one time subscription of the IPO: 632
So oversubscription is not an issue. There are all chances, that the IPO will receive huge oversubscriptions.

Comments on Financial Performance:
The company earned revenue of Rs. 63.36 Cr and net profit of Rs. 8.04 Cr. for the year 2022-23. However the revenue and net profits show sharp rise compared to revenue of Rs. 11.35Cr and net profit of Rs. 35 lac for the year 2020-21. This is something exceptional and raises eyebrow. So, if the profits of 2022-23 can be sustained in the future, then the shares are at attractive valuation and can bring in good returns to the IPO investors.
Assuming the profits are genuine and may repeat, we strongly suggest the IPO-investors, to apply this IPO with full force.